There weren’t too many surprises yesterday although not every currency developed precisely, just close. Even that doesn’t surprise because in the part of the sequence we are in has several close projection targets and also retracement areas that are approximate. I think this is likely to continue today and probably through tomorrow. Actually, given Monday is a U.S. bank holiday it’ll mean that we’ll probably see limited movement each day until then. That doesn’t mean that we’ll stay in a range. Indeed, I think the current development should continue but within the boundaries of these sections that are towards the end of a sequence.
The EUR/USD is working its way quite well. The USD/CHF has some issues which confuse so I’d suggest taking care there, while the GBP/USD is now sitting in a place where it can do a couple of things. Today should provide some information about whether we see new lows, or not.
I had taken a step back with the AUD/USD yesterday, the rally having been too strong to retain a bearish outlook. I had been considering an alternative bullish option for some while. I’m still not 100% comfortable but for now the upside does look resurgent although it looks like suffering a similar fate to the Europeans – a good deal of choppy trading – so don’t expect a clear run at the target.
Finally come the JPY pairs. The USD/JPY has attempted to push higher yet again, but, yet again, it failed. There are two options here now – either continued range trading for another day or so or a new corrective low before it rallies. The upside targets remain. Where does this leave the EUR/JPY? Well, yesterday’s losses do not seem complete and from what I see of both the USD/JPY and EUR/USD it may well need both to dip further to reach the downside targets. Thus, take care until the EUR/USD has met its target and allowed the EUR/JPY to meet its own also.